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Tuesday, February 27, 2024

Dubai’s July business growth decelerates from June peak – S&P Global

Dubai’s businesses demonstrated continued strength in July, fueled by new contracts and increased output, with restrained costs for raw materials and supplies further reinforcing growth prospects for the year ahead.However, July’s performance slightly lagged behind the 10-month high seen in June.

The key sectors – construction, wholesale and retail, and travel and tourism – witnessed slower growth in new business compared to June, according to the latest PMI data from S&P Global.

Consequently, companies also exhibited a reduction in hiring activity.

Nonetheless, the overall sentiment remains optimistic. David Owen, Senior Economist at S&P Global Market Intelligence, noted that the surge in output was driven by new orders, successful marketing, and project wins.

He highlighted that a substantial portion of businesses experienced monthly expansion, and firms were displaying increased confidence about the future. The report also indicated improving supply conditions and stable price pressures.

The July Purchasing Managers Index (PMI) reached 55.7, down from June’s 10-month high of 56.9. This figure still indicated a robust upswing in non-oil economy conditions.

The PMI is based on output, employment generation, and CEO/owner sentiments, with any reading above 50 suggesting business activity expansion.

Despite the cooling demand growth observed after the June high, key sectors reported a slightly weaker rise in new business, leading to a modest moderation in job creation.

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